Optional extra payments

jkepple

Hello
My monthly DD for a credit card was £99 pcm and now the lender wants to add an extra £77 pcm to it as an optional extra. 
If I refuse, would it affect my credit file or credit limit?
Thanks

emmajones1976

No, they just want the card cleared quicker as part of their responsible lending obligations. Assuming they havent raised the MINIMUM PAYMENT here, of course. Are they 100% using the term "optional"?

Ebe_Scrooge

jkepple said:

If I refuse, would it affect my credit file or credit limit?

Assuming the additional payment really is an optional extra, and you're still paying at least the minimum each month, then it won't affect your credit history as such.  However, be aware that it's much better to pay the full statement balance every month - not only does it avoid having to pay interest, but it reflects more positively on your history than if you're carrying a balance from month to month.

In terms of credit limit - any card issuer can increase or decrease limits at any time.  There's an argument to say that they'll be keen to reduce your limit if their computer systems flag you up as struggling to stay on top of your debt - although in reality that's only one factor in a complex algorithm that decides credit limits.